The SBA administers two particular business assistance programs for small disadvantaged businesses (SDBs).  These programs are the 8(a) Business Development Program and the Small Disadvantaged Business Certification Program.  While the 8(a) Program offers a broad scope of assistance to socially and economically disadvantaged firms, SBD certification strictly pertains to benefits in Federal Procurement.  Companies which are 8(a) firms automatically qualify for SDB certification.

Today’s 8(a) Business Development Program is strengthened and improved to be a truly effective business development vehicle.  New regulations permit 8(a) companies to form beneficial teaming partnerships and allow Federal agencies to streamline the contracting process.  New rules make it easier for non-minority firms to participate by proving their social disadvantage.  We also have implemented the new Mentor-Protégé Program to allow starting 8(a) companies to learn the ropes from experienced businesses.  Our task is to teach 8(a) and other small companies how to compete in the Federal contracting arena and how to take advantage of greater subcontracting opportunities available from large firms as the result of public-private partnerships.

The 8(a) Program has become an essential instrument for helping socially and economically disadvantaged entrepreneurs gain access to the economic mainstream of American society.  SBA has helped thousands of aspiring entrepreneurs over the years to gain a foothold in government contracting.  Participation is divided into two phases over nine years: a four-year development stage and a five-year transition stage. 

Benefits of the Program

*Participants can receive sole-source contracts, up to a ceiling of $3.5 million for goods and services and $5.5 million for manufacturing. While SBA helps 8(a) firms build their competitive and institutional know-how, the agency also encourages them to participate in competitive acquisitions.

*Federal acquisition policies encourage Federal agencies to award a certain percentage of their contracts to SDBs. To speed up the award process, the SBA has signed Partnership Agreements (PAs) with a number of federal agencies allowing them to contract directly with certified 8(a) firms.

*8(a) firms are permitted to form joint ventures and teams to bid on contracts. This enhances the ability of 8(a) firms to perform larger prime contracts and overcome the effects of contract bundling, the combining of two or more contracts together into one large contract.

Program goals require 8(a) firms to maintain a balance between their commercial and government business. There is also a limit on the total dollar value of sole-source contracts that an individual participant can receive while in the program: $100 million or five times the value of its primary NAICS code. The overall program goal is to graduate firms that will go on to thrive in a competitive business environment.

To achieve this end, SBA district offices monitor and measure the progress of participants through annual reviews, business planning, and systematic evaluations. 8(a) participants may take advantage of specialized business training, counseling, marketing assistance, and high-level executive development provided by the SBA and its resource partners. They may also be eligible for assistance in obtaining access to surplus government property and supplies, SBA-guaranteed loans, and bonding assistance

Eligibility Requirements
 
To qualify for the program, a small business must be owned and controlled by a socially and economically disadvantaged individual. Under the Small Business Act, certain presumed groups include African Americans, Hispanic Americans, Asian Pacific Americans, Native Americans, and Subcontinent Asian Americans. Other individuals can be admitted to the program if they show through a "preponderance of the evidence" that they are disadvantaged because of race, ethnicity, gender, physical handicap, or residence in an environment isolated from the mainstream of American society. In order to meet the economic disadvantage test, all individuals must have a net worth of less than $250,000, excluding the value of the business and personnel residence.

Successful applicants must also meet applicable size standards for small business concerns; be in business for at least two years; display reasonable success potential; and display good character. Although the two-year requirement may be waived, firms must continue to comply with various requirements while in the program.

Applying to the 8(a) Program

You can apply electronically for the 8(a) and SDB Programs.  The e-application is accessible from the 8(a)BD home page at www.sba.gov/8abd.  Some documentation must be sent to SBA in conjunction with the on-line application.  Companies must also be registered in Central Contractor Registration (CCR) before beginning the application process; this can be done at CCR.  To register in CCR a firm must have a DUNS Number.  A DUNS Number can be obtained at no charge from Dun & Bradstreet by calling 1-800-634-5669 or online at www.smallbusiness.dnb.com.  For more information or questions, visit the website or call the Richmond District office at 804-771-2400 ext. 115 or visit the local website.